Government agency calls on CMS to monitor 5% rule for hospitals within hospitals

The Department of Health and Human Services' Office of Inspector General found that 19 of 87 hospitals-within-hospitals (22%) exceeded the annual 5% threshold for readmissions from their host hospitals at least once from September 2000 through December 2002.

The Centers for Medicare & Medicaid Services does not have a system to detect readmissions over the 5% threshold.

The OIG recommended CMS develop a way develop such a system. The OIG also asked CMS to require hospitals-within-hospitals to show they can be organizationally and financially independent.